Internal Funds Research Articles

Pengaruh Financial Teknologi, Pengelolaan Keuangan dan Modal Sosial Terhadap Kinerja UMKM di Sentral Grosir Cikarang (SGC)

The study aimed to analyse the impact of financial technology, financial management, and social capital on SME performance. Several factors influence SME performance, including internal funding and external factors. Issues to address include underutilisation of financial technology, ineffective financial management, and lack of utilisation of social capital. This quantitative study collected data via a questionnaire from 60 SME operators using purposive sampling. Data analysis employed multiple linear regression assisted by SPSS. Findings revealed that financial technology, financial management, and social capital positively influence SME performance. This is due to the effective utilisation of technological advancements in business operations significantly enhancing SME performance. Improved financial management enables SMEs to seek funds selectively and use them efficiently. Similarly, building social capital facilitates SME operators' adaptation to their business environment, thereby enhancing SME performance. Recommendations for future research include expanding the scope of study variables, and SMEs should maintain and enhance the factors of financial technology, financial management, and social capital influencing SME performance. With financial technology, SMEs can access financial services more easily, utilise financial management for better record-keeping and calculation, and build social capital to develop their businesses.

Decolonizing Academic Funding: An Evaluation of an Indigenous Collaborative Funding Initiative

In 2020 an innovative Indigenous community-led internal funding initiative was undertaken at a major university in Canada, followed in 2022 by a qualitative study of its inaugural round. This funding initiative is unique in that each research project was first identified by an Indigenous community/organization through a Canada-wide outreach process. The outreach process involved reaching out to over 700 Indigenous communities and organizations, via email or telephone, to ask if they would be interested in participating in a funded research project they identified as important and beneficial. The role of the university academic research partners was that of mentor rather than principal investigator for each project. Nine community-led research projects were funded and are currently underway. In this paper the authors outline the process of developing the initiative, its components, and findings from the study. Successes and challenges of the funding model are identified followed by a discussion of emergent themes. One of the key themes that emerged is that although there are aspects of this initiative that met its intended goals, it highlights a barrier in meeting one of the objectives, contributing to Indigenous research governance and self-determination.

Capital structure of special-purpose governments

PurposeThe paper examines whether special purpose governments follow the pecking order model when raising capital, replacing firm equity in the original model with local intergovernmental revenues. Special purpose governments are a relatively underexamined component of state and local governments, and their capital structure choices have important implications for America’s aggregate fiscal health. This paper seeks to illuminate special purpose governments’ choices among available forms of capital.Design/methodology/approachTo address our research inquiry regarding whether special-purpose governments adhere to the pecking order theory, we narrow our focus to a specific group of transit entities. Our investigation utilizes data sourced from two distinct repositories: the United States Census of Governments and the National Transit Database. To facilitate integration of these disparate datasets, we establish a correspondence between them using the Federal Information Processing Standard and the transit identification number. Initially, our analysis employs maximum likelihood estimation, comparing these estimates to those generated by a naïve model. Subsequently, we derive parameter estimates through the application of a bivariate probit model.FindingsThe paper supports the pecking order hypothesis where internal funds are consumed first, debt is consumed next and IGR is consumed last. The results are robust and are not influenced by simultaneity bias.Research limitations/implicationsThe paper uses transit special purpose governments as the special purpose government of interest. These transit special purpose governments have high fixed costs that may inform their capital structure decisions relative to non-transit special purpose governments. Additionally, transit special purpose governments often have a profit-maximizing objective that may not uniformly apply to other special purpose governments, such as school districts, who lack such an incentive.Practical implicationsOur research should grab the attention of state and local politicians, voters, policy experts and scholars. Special-purpose governments, a key part of our governmental system, are on the rise. Understanding them better can guide decision-making on how to allocate resources, set policies and plan strategically. This knowledge boosts financial reporting quality, transparency, accountability and public confidence. Journalists can leverage our findings to ensure accurate and thorough reporting, fostering accountability and trust. Additionally, debt markets and analysts can factor this information into their risk assessments.Originality/valueThe paper enhances our understanding of how special purpose governments interact with existing models of corporate finance when making capital structure decisions.

Local credit and international trade

AbstractThis study investigates the relationship between local access to credit and exports. A model of finance‐constrained exporters and bank entry decisions generates trade equations that we estimate with a panel of Brazilian municipal‐level trade and banking data. Literature in the financial development field has struggled to deal with the endogenous relationship between finance and economic outcomes. To untangle this reverse causality, we instrument bank presence by using geographic characteristics particular to the bank branching decision. The results show that local bank access matters: increases in bank branches per person increases bilateral exports and varieties at the city‐ and industry levels. The effect is even stronger for industries where the credit constraint binds, specifically those that use less internal funds and have more difficulty producing collateral.

The Applicability of The Pecking Order Theory in The Digital Economy

The Peck Order Theory (POT), proposed by Myers and Majluf in 1984, posits that firms prioritize their sources of financing based on the principle of least resistance, starting with internal financing, followed by debt, and ending with equity as a last resort. In the context of the digital economy—which is defined by new finance mechanisms and technical advancements like big data, blockchain, crowdsourcing, and artificial intelligence (AI)—this study investigates the applicability and relevance of POT. This study investigates how these contemporary tools impact conventional financing behaviors and preferences through an extensive literature review.The findings suggest that while POT remains a powerful framework, its application in the digital age needs to be modified to account for the reduced information asymmetry and increased efficiency brought about by digital innovations.

Digital transformation whitewashing and financing constraints

This study investigates the drivers and consequences of digital transformation whitewashing (DTW) among Chinese manufacturing firms from 2010 to 2021. We find that financing constraints have a robust and significant positive impact on DTW, an effect that is more pronounced for firms located in provinces with lower marketization or operating in industries with lower levels of monopoly. Regarding economic consequences, our results indicate that DTW fails to alleviate external financing constraints, instead causing firms to increasingly rely on internal financing.

A Financing Constraints Paradox? Internal Finance and Capital Structure Link for Tourism Firms: Asian Emerging Market evidence

The aim of the study is to investigate the relationship between the internal financial and capital structure of an organization in the travel and tourism sector. The study shows how financial constraints on tourism companies affect their ability to finance themselves. The study also shows a relationship between tax shielding and financial leverage. This study analyzes panel data collected over a 21 year period, from 1998 to 2019, from over 100 publicly traded tourism companies in three Asian countries. A panel data methodology and the generalized method of moments estimation (GMM) were used in this empirical study. To support our hypothesis, using a generic method to evaluate parameter estimation will be our most effective method to improve the literature. Overall, the results show that financially stressed tourism firms use their option of debt-free tax avoidance to increase leverage. There is also a positive correlation between tax haven and leverage for firms with limited resources. The correlations between financial leverage and corporate debt supported by the results theoretically support the pecking order. By providing useful insights into the tax shielding of non-debt, which is significantly correlated with leverage for firms operating in tourism, this study closes the gap in firms’ capital structure decisions regarding access to finance. JEL Classification: G0, G01, L25

Building a community-academic partnership to expand services for childhood cancer survivors in a rural, low-income region in California.

360 Background: Community-engaged research is an effective approach to address health disparities that is well-established in the public health domain and has not been widely applied in childhood cancer survivorship. We present our multi-year experience building a community-academic partnership and community-engaged childhood cancer survivorship research portfolio. Methods: We have developed a partnership between Jacob’s Heart Children’s Cancer Support Services, a nonprofit community-based organization (CBO) and an academic pediatric cancer survivorship team, with the goal of improving health outcomes for childhood cancer survivors and their families in the Salinas Valley, a rural, low-income region in California with majority Hispanic/Latino/a/e residents. Our partnership process is guided by principles of community-based participatory research, prioritizing trust and involving community members as equal partners in all phases of research. Results: In year 1 (2021-2022), we held successive meetings which identified common goals and shared values, established the collaboration, and sought funding to advance our goals. In year 2 (2022-2023), with internal grant funding, we conducted a qualitative needs assessment interviewing childhood cancer survivors, parents, and CBO staff. Teamwork enriched the data analysis and allowed us to identify problems in communication as an area of need, which directly informed subsequent grant proposals. In year 3 (2023-2024), with external funding we began a multi-year study to understand and improve survivorship-related communication among Hispanic/Latino/a/e young adult childhood cancer survivors, their parents, and clinicians. Current and future projects include collaborative design and pilot testing of a novel communication intervention, formation of a dedicated community advisory board, and a CBO-driven program evaluation. Findings from our community-engaged studies have prompted new sets of research questions and illustrate opportunities for institutional change in the clinic setting. In parallel, the CBO has leveraged research findings in real-time to identify barriers to seeking support among childhood cancer survivors and families, and adapted and improved programming for families in response. Through our joint research portfolio, we have incorporated training and mentorship for staff at the CBO and medical trainees at the academic center. Conclusions: A community-academic partnership in a rural, low-income region has the potential to reduce health disparities and improve childhood cancer survivors’ health outcomes through collaborative program development and community-engaged research. Fueled by mutual investment and strong momentum, our partnership facilitates an interconnected cycle of research and practice change that is grounded in community needs.

Damping excessive viral-induced IFN-γ rescues the impaired anti-Aspergillus host immune response in influenza-associated pulmonary aspergillosis

Influenza-associated pulmonary aspergillosis (IAPA) is a severe fungal superinfection in critically ill influenza patients that is of incompletely understood pathogenesis. Despite the use of contemporary therapies with antifungal and antivirals, mortality rates remain unacceptably high. We aimed to unravel the IAPA immunopathogenesis as a means to develop adjunctive immunomodulatory therapies. We used a murine model of IAPA to investigate how influenza predisposes to the development of invasive pulmonary aspergillosis. Immunocompetent mice were challenged with an intranasal instillation of influenza on day 0 followed by an orotracheal inoculation with Aspergillus 4 days later. Mice were monitored daily for overall health status, lung pathology with micro-computed tomography (μCT) and fungal burden with bioluminescence imaging (BLI). At endpoint, high parameter immunophenotyping, spatial transcriptomics, histopathology, dynamic phagosome biogenesis assays with live imaging, immunofluorescence staining, specialized functional phagocytosis and killing assays were performed. We uncovered an early exuberant influenza-induced interferon-gamma (IFN-γ) production as the major driver of immunopathology in IAPA and delineated the molecular mechanisms. Specifically, excessive IFN-γ production resulted in a defective Th17-immune response, depletion of macrophages, and impaired killing of Aspergillus conidia by macrophages due to the inhibition of NADPH oxidase-dependent activation of LC3-associated phagocytosis (LAP). Markedly, mice with partial or complete genetic ablation of IFN-γ had a restored Th17-immune response, LAP-dependent mechanism of killing and were fully protected from invasive fungal infection. Together, these results identify exuberant viral induced IFN-γ production as a major driver of immune dysfunction in IAPA, paving the way to explore the use of excessive viral-induced IFN-γ as a biomarker and new immunotherapeutic target in IAPA. This research was funded by the Research Foundation Flanders (FWO), project funding under Grant G053121N to JW, SHB and GVV; G057721N, G0G4820N to GVV; 1506114N to KL and GVV; KU Leuven internal funds (C24/17/061) to GVV, clinical research funding to JW, Research Foundation Flanders (FWO) aspirant mandate under Grant 1186121N/1186123N to LS, 11B5520N to FS, 1SF2222N to EV and 11M6922N/11M6924N to SF, travel grants V428023N, K103723N, K217722N to LS. FLvdV was supported by a Vidi grant of the Netherlands Association for Scientific Research. FLvdV, JW, AC and GC were supported by the Europeans Union's Horizon 2020 research and innovation program under grant agreement no 847507 HDM-FUN. AC was also supported by the Fundação para a Ciência e a Tecnologia (FCT), with the references UIDB/50026/2020, UIDP/50026/2020, PTDC/MED-OUT/1112/2021 (https://doi.org/10.54499/PTDC/MED-OUT/1112/2021), and 2022.06674.PTDC (http://doi.org/10.54499/2022.06674.PTDC); and the "la Caixa" Foundation under the agreement LCF/PR/HR22/52420003 (MICROFUN).

Invested in excellence: evaluating the impact of internal funding on pedagogical development and collaboration in higher education

ABSTRACT This study explores the impact of internal funding on the development of scholarship in learning and teaching within a post-92 Scottish higher education institution. Employing a qualitative survey approach, this research engaged sixteen principal investigators from internally funded learning and teaching projects to understand how such funding influences academic practices. Through thematic analysis, four key themes emerged: enhancement of pedagogical skills, fostering of interdisciplinary collaboration, administrative challenges, and the integration of students as partners. The findings illustrate that internal funding significantly bolsters pedagogical capabilities, facilitating the adoption of innovative teaching strategies and nurturing broader academic collaborations. Based on these insights, the paper suggests three strategic recommendations for enhancing the efficacy of funding processes: refining support for project management, simplifying administrative procedures, and strengthening frameworks for student involvement in projects. These recommendations aim to optimise the benefits of internal funding, so that it better supports educational advancements in higher education.

The Impact of Financing Structure on Innovation: Empirical Evidence from Chinese Firms

Selecting an appropriate financing structure is vital to support corporate R&D activities, which is crucial for firms competitive advantages. So how does financing structure affect innovation? This paper investigates the impact of external financing ratios on corporate R&D. The study finds that a high proportion of external financing suppresses R&D investment. Internal financing and equity financing significantly promote corporate R&D investment, whereas debt financing and government subsidies have a notable inhibitory effect. The presence of equity concentration and financing constraints weakens the suppressive impact of external financing on R&D investment. The inhibitory effect of external financing on R&D intensity is more pronounced in state-owned, small-scale, and traditional enterprises. This paper delves into the optimal financing structure for corporate innovation, providing new perspectives on the relationship between financing structures and corporate R&D, and offering empirical evidence to support the improvement of the equity financing market in the country.

Effect of Long-Term Debt on Financial Performance of Cement Manufacturing Companies

Due to its critical role in overall economic development, the cement industry is identified as one of the areas of the first and second Growth and Transformation Plan (GTP) as a sector of special consideration. However, the main objective of this study is to examine the effect of long-term debt on financial performance in cement manufacturing companies. Moreover, the specific objectives include; examining the effect of long-term debt on return on assets in cement manufacturing companies, also, to examine the effect of long-term debt on return on equity in cement manufacturing companies, in addition, the study identifies two financial performance measures which include; return on assets and return on equity, and directly considered with the relationship of long-term debt. The methodology of this study is exclusive criteria; because the study reviewed only recent studies from 2019-2023 that reported on long-term debt and financial performance. The data is gathered through the means of review and analyzed through identifying the outcome of the reviewed studies. Therefore, based on the majority, the study found a significant negative influence of long-term debt (LTD) on financial performance measured by return on assets (ROA) of cement manufacturing companies and also, a negative effect was found with the financial performance measured by return on equity (ROE) of cement manufacturing companies. In line with the findings, the study concludes that there is a negative effect of long-term debt on financial performance measured by both the (ROA and ROE) of cement manufacturing companies. Similarly, the study recommends that cement manufacturing companies avoid the use of debt in financing their assets; also, the cement manufacturing companies should also focus much on internal financing so as to improve shareholder returns.

Barriers to innovation and innovation performance: the mediating role of external and internal funding in Korean green companies

Barriers to innovation and innovation performance: the mediating role of external and internal funding in Korean green companies

Funding sources, colonial legacy, and new firms’ creation in Africa

This study examines the determinants of new firm creation in Africa, focusing on external and internal funding sources and their interactions. It also explores the influence of colonial history by separately analyzing former British and French colonies. The primary goal is to help fill crucial gaps in African literature on the determinants of entrepreneurship. Given Africa's widespread poverty and underdevelopment, understanding what drives entrepreneurship is essential for job creation and economic growth. The study reveals three key findings. First, at the full sample level, remittances are the only external financing source positively associated with new firm creation, while foreign aid and foreign direct investment obstacle it. Internal sources, like savings and credit, do not show significant effects. Second, the subsample analysis reveals heterogeneous results: former British colonies' funding sources align with the overall findings, while in former French colonies, only savings support entrepreneurship. Third, considering control variables, the subsample analysis indicates two distinct entrepreneurship models: opportunity-based in former British colonies and necessity-based in former French colonies. These findings are noteworthy and provide significant policy implications at both national and international levels. Crucially, the positive role of remittances in financing new business initiatives, confirms that migration serves as a mutually beneficial arrangement for both sending African countries and the host countries.

Legal Protection Of Fund Saving Customers Against Cyber Phising Acts In Indonesia

Study thesis This analyze about Legal Protection for Customers Saving Funds Against Cyber Phishing in Indonesia. As for focus study This is regarding (1) how cyber phishing phenomenon in scope banking in Indonesia? and (2) how protection law to customers internal fund storage cyber phishing acts in Indonesia? Study This use approach normative ones with choose type study the aim For research governing rules /norms How protection law customers saving funds against cyber phishing acts in Indonesia. Writer study with theory certainty law and theory protection law , which with second knife analysis the writer produce Conclusion (1) The phenomenon of cybercrime with form phishing later This the more massive happened in Indonesia with so rapidly development technology in Indonesia, OJK owns it authority supervise in sector finance until moment This Not yet publish or validate Special OJK regulations arrange matter that's what happened the absence of norms on crime cyber crime with form phishing in Indonesia and (2) Form protection law to customers depositors who become victims of cyber phishing preventive stated in OJK Regulation Number 22 of 2023 changes on OJK Regulation Number 6 of 2022 concerning Protection Consumers and Society in the Financial Sector in Chapter II of the Law as stated in Article 3 paragraphs (1), (2) and paragraph (3) and Article 20. Meanwhile form protection law repressive regulated in Bank Indonesia Regulation Number : 16/1/PBI/2014 concerning Protection System Services Consumers Payment in article 16 paragraphs (1) and (2) later also regulated in law Number 19 of 2016 changes on Constitution Number 11 of 2008 concerning Information and Transactions Electronics in Article 28 paragraph (1) and Article 45 paragraph (1).

Financing a Capital-Constrained Supply Chain under Risk Regulations: Traditional Finance versus Platform Finance

Small- and medium-sized enterprises (SMEs) frequently face challenges in obtaining financial assistance from traditional banks. Platform Supply Chain Finance (PSCF) has emerged as a promising solution for financing issues among SMEs, with an added focus on integrating sustainability aspects. This study focused on a two-tier supply chain as its primary research topic to find strategies to enhance supplier financial viability and improve the efficiency and profitability of the main manufacturing enterprise. In this study, we establish three distinct hypotheses corresponding to the three models involving supplier and manufacturer participation, encompassing parameters such as production batch size, pricing, and supply chain profit. First, it examined financing decisions through the lens of core enterprise-led platform finance. Second, it applied the Stackelberg game theory to investigate financing decisions in three distinct modes: traditional finance, platform internal finance, and external platform finance. Suppliers, manufacturers, and banks can be seen as participants in a Stackelberg game. In this game, suppliers act as leaders, making production and procurement decisions first, while manufacturers and banks act as followers, adjusting their behavior based on the suppliers’ decisions. Finally, it performed a comparative analysis of decisions and supply chain efficiency across these modes. When the risk regulation cost coefficient falls below a certain threshold, suppliers are willing to set up their own PSCF and there is an optimal level of risk regulation effort within the interval (0, 1). We compare platform finance with traditional finance and find that the traditional finance model maximizes profits for suppliers, while the external financing model maximizes profits for manufacturers and the overall supply chain profit. Findings provide insights for platforms, suppliers, manufacturers, and banks to implement optimal financing and channel structures to increase their profits and promote the sustainable development of the financial supply chain. In addition, future research on blockchain platform models would be highly meaningful.

The Simultaneity of Strategic Financial Decisions: Evidence from PSX listed Firms

This study investigates the interrelationships among financing, dividends, and the investment choices of non-financial firms listed on PSX. Unlike previous research, which primarily focused on developed nations with well-developed financial markets and investor protection laws, this study examines businesses in a developing economy characterized by fragile corporate governance, precarious investor protection laws, and political instability. The aim of this study is to shed light on the unique decision-making processes of managers operating in such contexts. This study employs a framework of simultaneous equations considering the flow of funds identity and utilizes the 3SLS estimation technique, which addresses the limitations of single-equation estimation methods. The findings reveal significant interdependencies among corporate financing, dividends, and investment decisions. Financing decisions positively influence dividend decisions and vice versa. Similarly, financing decisions positively impact investment decisions and vice versa. Moreover, dividends and corporate investments have been shown to be competing uses of funds. The results highlight the sensitivity of all three financial decisions to internal cash flows. Additionally, leverage and internally generated cash flows are identified as alternative sources of funds, while investment and dividend decisions are constrained by both internal funds and external debt. These findings align with the flow of funds approach and provide valuable insights for corporate managers and investors to understand the dynamics of financial choices in non-financial firms. This study contributes to the literature by filling a gap in knowledge regarding the interactions among financing, dividends, and investment decisions in emerging markets.

The Relationship between Retained Earnings and Financial Performance of Listed Non-Financial Firms: An Econometrics Examination

Internal funding sources such as retained earnings provide minimize information asymmetry in addition to being cheap and convenient for ailing firms such as listed non-financial firms trading at the Nairobi Securities Exchange (NSE). Research has however failed to do document precisely how the potential inherent in retained earnings can be exploited to improve financial performance of such firms in the long run. Therefore, this research conducted among 42 non-financial firms listed on the exchange explores the relationship between retained earnings and financial performance from an econometrics perspective. The study is anchored on the Pecking Order Theory, and employs the panel data research design founded in the positivist research paradigm, with data covering the time interval 2016 to 2022 inclusive. Data is sourced purposively from the annual reports of the non-financial sector, including agricultural firms, automobiles and accessories, commercial & services, construction & allied, energy & petroleum, insurance, investment, investment services, manufacturing & allied, telecommunication, and real estate investment trust. The research uses the fixed effects model under panel regression to show a positive and significant relationship between retained earnings and financial performance, and particularly the ultimate direct influence that retained earnings have on financial performance of listed nonfinancial firms. Therefore nonfinancial sector stakeholders should seek to leverage retained earnings to enhance financial performance and achieve resilience in the volatile market conditions, while scholars should seek to enhance external validity of these findings by replicating them in other study contexts. Keywords: Information asymmetry, retained earnings, financial performance, nonfinancial firms, Securities exchange, Econometrics, Panel data.

The Optimal Financing Decisions of Capital-Constrained Manufacturers under Different Power Structures

This paper investigates the optimal financing decisions of capital-constrained manufacturers under different power structures. Using a Stackelberg game model, it analyzes the optimal equilibrium operational decisions of capital-constrained manufacturers at varying levels of internal capital. The study finds that, compared to a power structure dominated by eco-innovative enterprises, a power structure led by ordinary enterprises enhances the level of eco-innovation of innovative products and the overall profitability of the supply chain. When eco-innovative enterprises are well-capitalized, internal financing has lower costs but may lead to idle funds, while bank financing and mixed financing have higher costs but make full use of available capital. When eco-innovative enterprises are undercapitalized, mixed financing is the optimal choice. The research employs numerical simulations to analyze the impacts of consumer environmental awareness, innovation investment costs, and production costs on the level of eco-innovation in products, manufacturers’ profits, and the overall profitability of the supply chain, providing decision-making references for governments and enterprises.

Determinants of Capital Structure in the Cement Mining Industry on the Nairobi Securities Exchange

In today's competitive corporate and economic landscape, businesses strive to increase their value by acquiring additional funds or capital for expansion. These funds can be obtained internally, externally, or through loans, including international borrowing. This study specifically focuses on the factors that influence the capital structure of mining companies listed on the Nairobi Securities Exchange. It highlights that businesses in a competitive corporate and economic environment often aim to enhance their value by considering various financing options, such as internal funds, external sources, or loans, including international borrowing. Previous studies have indicated that factors like profitability, company size, asset structure, and external elements such as commodity prices can impact a firm's capital structure, which is typically represented by the debt-to-equity ratio. This study employs a cross-sectional research design to investigate the determinants of capital structure among mining companies listed on the Nairobi Securities Exchange. The findings emphasize the significant role of profitability and asset structure in shaping capital structures. Additionally, commodity prices and company size also exert an influence. The study provides valuable insights into how firms, especially those in developing countries like Kenya, manage their capital structures in the face of various economic and industry-specific challenges.